Core Insights - Hubbell Incorporated is hosting its 2024 Investor Day to discuss long-term growth strategies, margin expansion, and free cash flow generation [1] Company Overview - Hubbell Incorporated is a leading manufacturer of utility and electrical solutions, with 2023 revenues of $5.4 billion, aimed at enabling safe, reliable, and efficient operation of critical infrastructure [3]

PART I FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201%20Financial%20Statements) Hubbell's Q1 2024 saw increased net sales but declining net income, diluted EPS, and operating cash flow [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2024 net sales increased 8.8% to $1,399.1 million, yet operating and net income declined due to higher costs and a business disposition loss Q1 2024 vs Q1 2023 Income Statement Highlights | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | $1,399.1 | $1,285.4 | +8.8% | | Gross profit | $447.7 | $448.3 | -0.1% | | Operating income | $228.5 | $248.8 | -8.2% | | Net income attributable to Hubbell | $147.8 | $181.9 | -18.7% | | Diluted earnings per share | $2.73 | $3.37 | -19.0% | - The company recorded a **$5.3 million loss** on the disposition of a business in Q1 2024, which was not present in the prior year period and contributed to the decline in pre-tax income[6](index=6&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased due to disposition, while liabilities declined from debt reduction, increasing shareholders' equity Balance Sheet Summary | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | Total Current Assets | $2,232.5 | $2,167.2 | | Total Assets | $6,862.1 | $6,914.0 | | Total Current Liabilities | $1,348.7 | $1,323.4 | | Long-Term Debt | $1,895.7 | $2,023.2 | | Total Liabilities | $3,919.0 | $4,024.7 | | Total Hubbell Shareholders' Equity | $2,930.4 | $2,877.0 | - Assets and liabilities held for sale, which totaled **$162.4 million** and **$42.1 million** respectively at year-end 2023, were reduced to zero, reflecting the completion of the residential lighting business sale[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased to $92.2 million; investing activities provided $88.6 million from a disposal, financing used $125.3 million Q1 2024 vs Q1 2023 Cash Flow Summary | Activity | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $92.2 | $113.7 | | Net cash provided by (used in) investing activities | $88.6 | $(35.1) | | Net cash used in financing activities | $(125.3) | $(91.8) | | **Increase (decrease) in cash** | **$52.0** | **$(10.5)** | - The primary driver for the positive cash flow from investing activities was the **$122.9 million** received from the disposal of a business, which more than offset capital expenditures of **$40.3 million**[12](index=12&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail Q1 2024 residential lighting business sale, new restructuring, debt reduction, and revenue drivers - The company sold its residential lighting business in Q1 2024 for **$131 million**, recording a pre-tax loss of **$5.3 million**[28](index=28&type=chunk) - Total unsatisfied performance obligations for contracts longer than one year were approximately **$150 million** as of March 31, 2024, primarily within the Utility Solutions segment[40](index=40&type=chunk) - The company initiated new restructuring actions in 2024 with total expected costs of **$9.8 million**, of which **$4.7 million** was incurred in Q1 2024[80](index=80&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2024 net sales grew from acquisitions and organic growth; operating margin contracted due to costs and investments, liquidity remained strong Q1 2024 Key Performance Metrics | Metric | Q1 2024 | YoY Change | | :--- | :--- | :--- | | Net Sales | $1,399.1M | +9% | | Organic Net Sales Growth | 2% | - | | Operating Margin | 16.3% | -310 bps | | Adjusted Operating Margin | 19.7% | -100 bps | | Diluted EPS | $2.73 | -19% | | Adjusted Diluted EPS | $3.60 | -0.3% | - Sales growth was primarily driven by acquisitions in the Utility Solutions segment (notably Systems Control) and price realization across both segments. This was partially offset by the divestiture of the residential lighting business[115](index=115&type=chunk)[117](index=117&type=chunk) - Margin contraction was attributed to material and other cost inflation, lower volumes, and continued business investments, which were partially offset by favorable price realization and productivity benefits[118](index=118&type=chunk)[138](index=138&type=chunk) [Segment Results](index=34&type=section&id=Segment%20Results) Utility Solutions net sales rose 14.4% from acquisitions, despite margin decline; Electrical Solutions net sales flat with stable margin [Financial Condition, Liquidity and Capital Resources](index=36&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) Solid financial condition with 42% debt-to-capital ratio, $92.2 million operating cash flow, strong liquidity, and $75.5 million returned to shareholders Capital Structure | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Debt | $2,115.4M | $2,140.6M | | Total Capital | $5,045.8M | $5,017.6M | | Total Debt to Total Capital | 42% | 43% | - During Q1 2024, the company made **$125 million** in principal payments on its Term Loan Agreement, which was originally used to fund the Systems Control acquisition[160](index=160&type=chunk) - The company repurchased **$10.0 million** of its common stock in Q1 2024, with **$290.0 million** remaining under the current authorization[158](index=158&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=ITEM%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No significant changes in market risk exposure, including foreign currency, commodity prices, or interest rates, were reported for Q1 2024 - There were no significant changes in the Company's exposure to market risks such as foreign currency, commodity prices, and interest rates during the three months ended March 31, 2024[176](index=176&type=chunk) [Controls and Procedures](index=42&type=section&id=ITEM%204%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control - Based on an evaluation as of March 31, 2024, the CEO and CFO concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level[179](index=179&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[180](index=180&type=chunk) PART II OTHER INFORMATION [Risk Factors](index=43&type=section&id=ITEM%201A%20Risk%20Factors) No material changes to the company's risk factors were reported from those disclosed in the 2023 Form 10-K - There have been no material changes in the Company's risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[182](index=182&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=ITEM%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, the company repurchased 29,000 shares for $10.0 million, with $290.0 million remaining under authorization Q1 2024 Share Repurchase Activity | Period | Shares Purchased (000s) | Average Price Paid | Value (in millions) | | :--- | :--- | :--- | :--- | | Feb 2024 | 29 | $350.87 | $10.0 | | **Q1 Total** | **29** | **$350.87** | **$10.0** | - As of March 31, 2024, the remaining authorization under the share repurchase program was **$290.0 million**[183](index=183&type=chunk)[185](index=185&type=chunk)

Financial Data and Key Metrics Changes - Earnings per share (EPS) for the first quarter of 2024 was $3.60, flat compared to the previous year, with operating profit impacted by interest expenses from recent acquisitions [107][119] - Sales increased by 9% to $1.4 billion, with 2% organic growth and 6% inorganic growth attributed to acquisitions [23][135] - Operating profit was up 3% in dollar terms to $275 million, with a sequential margin increase of 30 basis points [23][119] Business Line Data and Key Metrics Changes - The Utility Solutions segment saw a 14% increase in sales, primarily driven by acquisitions, while organic growth was neutral due to a decline in volume [136] - The Electrical Solutions segment reported flat sales at approximately $500 million, but a 6% organic growth when excluding the impact of the residential lighting divestiture [25][119] - Grid automation experienced double-digit growth in both meters and communications, while the telcom sector faced significant declines [24][69] Market Data and Key Metrics Changes - The distribution markets are expected to grow, but current order patterns are softer due to utilities holding excess inventory [11][116] - The company anticipates a multi-year T&D investment cycle driven by aging infrastructure and electrification needs [105][106] - The telcom market is projected to decline by double digits for the full year, with expectations for a rebound in the second half [69][175] Company Strategy and Development Direction - The company is focused on grid modernization and electrification, positioning itself to meet the increasing demand for utility infrastructure [105][110] - Investments are being made in capacity expansion, particularly in transmission and substation areas, to support long-term growth [80][89] - The company aims to enhance service levels and reduce lead times to improve customer satisfaction and operational efficiency [81][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the setup for Utility Solutions for the remainder of 2024, citing strong visibility in most markets [106][122] - The operating environment remains inflationary, but the company achieved positive price/cost/productivity in both segments [5][119] - Management noted that while the first quarter faced challenges, they expect a strong rebound in demand as inventory levels normalize [28][92] Other Important Information - The company increased its expectations for full-year restructuring investments from $0.25 billion to $0.35 billion to manage costs while investing in growth initiatives [26][89] - The company hosted over 400 utility customers at a recent conference, emphasizing the importance of customer engagement and collaboration [117] Q&A Session Summary Question: Did distribution actually grow for Hubbell in the quarter? - Management indicated that distribution markets are experiencing a normalization phase, impacting order patterns but expect a rebound as inventory levels stabilize [11][28] Question: What is the outlook for the telcom business? - The telcom business is anticipated to decline by double digits for the full year, with a potential rebound in the second half as inventory levels normalize [69][175] Question: How are utility margins expected to trend throughout the year? - Utility margins are expected to see a sequential increase in the second quarter, with a slight decline anticipated in the fourth quarter [16][70]

16 GAAP measure [b] / [a] 16.3 % 19.4 % -310 bps Adjusted operating margin [c] / [a] 19.7 % 20.7 % -100 bps | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------|-------|----------|----------|-------|----------------|----------------| | Net Sales [a] | | 2024 \n$ | \n505.1 | $ | 2023 \n503.8 | Change \n— % | | Operating Income | | | | | | | | GAAP measure [b] | | $ | 71.0 | $ | 71.3 | — % | | Amortization of acquisition-related intangible assets | | | 4.2 | | 4 ...

Hubbell (HUBB) reported $1.4 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 8.9%. EPS of $3.60 for the same period compares to $3.61 a year ago.The reported revenue represents a surprise of +0.36% over the Zacks Consensus Estimate of $1.39 billion. With the consensus EPS estimate being $3.54, the EPS surprise was +1.69%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their n ...

Hubbell (HUBB) came out with quarterly earnings of $3.60 per share, beating the Zacks Consensus Estimate of $3.54 per share. This compares to earnings of $3.61 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.69%. A quarter ago, it was expected that this electrical products manufacturer would post earnings of $3.59 per share when it actually produced earnings of $3.69, delivering a surprise of 2.79%.Over the last four quarter ...

Date: April 30, 2024 NEWS RELEASE Hubbell Incorporated 40 Waterview Drive Shelton, CT 06484 475-882-4000 HUBBELL REPORTS FIRST QUARTER 2024 RESULTS SHELTON, CT. (April 30, 2024) – Hubbell Incorporated (NYSE: HUBB) today reported operating results for the first quarter ended March 31, 2024. "Hubbell is off to a solid start in 2024," said Gerben Bakker, Chairman, President and CEO. "Operating performance was highlighted by strong organic growth in our Electrical Solutions segment, where electrification drove ...

Analysts on Wall Street project that Hubbell (HUBB) will announce quarterly earnings of $3.54 per share in its forthcoming report, representing a decline of 1.9% year over year. Revenues are projected to reach $1.39 billion, increasing 8.5% from the same quarter last year.The consensus EPS estimate for the quarter has undergone an upward revision of 0.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates durin ...

Shelton, CT, April 26, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Hubbell Incorporated (NYSE:HUBB) today declared a regular quarterly dividend of $1.22 per share on the Company's common stock. The dividend will be paid June 17, 2024 to shareholders of record on May 31, 2024.  Hubbell Incorporated is a leading manufacturer of utility and electrical solutions enabling customers to operate critical infrastructure reliably and efficiently. With 2023 revenues of $5.4 billion, Hubbell solutions energize e ...

Shelton, CT, April 16, 2024 (GLOBE NEWSWIRE) -- Hubbell Incorporated (NYSE:HUBB) today announced it will release its first quarter 2024 financial results prior to the opening of the market on April 30, 2024. The Company will then webcast its Analysts' Conference Call to discuss the results at 10:00 AM ET. The full text of the press release announcing the results will be posted on Hubbell's corporate website under the Press Release section. You can also access this information by going to www.hubbell.com and ...